Michael Lansdell is a founding partner of specialist dental and medical accountants Lansdell & Rose and a chartered accountant. Here, he gives a breakdown of the Autumn Budget 2017…

November 22nd was Budget day and therefore time for the ubiquitous articles on who were the ‘winners’ and ‘losers’ and what the Chancellor’s plans would mean for you. The heads up that the winning team was probably going to be rather smaller in number was the prediction from the Office for Budget Responsibility (OBR) that economic growth will be below 2 per cent for the next five years. For context, that’s one of the gloomiest forecasts that many can remember.

Philip Hammond faced a rather unenviable task, then, although no one was expecting any show-stopping statements either. Back in March, Hammond made a dramatic U-turn, scrapping the planned rises to National Insurance that he had announced in his Spring Budget just days before. For all sorts of other reasons, delivering a safe, steady and non-controversial Budget was always going to be the Chancellor’s intention.

Of course, there is always one thing that grabs report writers’ attention and this time around it was the decision to scrap stamp duty for first-time buyers on properties up to £300,000. We need to look behind the headlines to find out what will be most relevant to dental practice owners, though! Here’s what may impact on your financial planning for the year ahead…

Income tax

Both the personal and higher-rate thresholds were increased by around 3 per cent, which is in line with inflation, so no surprises there. For basic rate taxpayers, the personal allowance will increase to £11,850 and for those paying a higher rate the new figure will be £46,350. If you don’t want to see your personal allowance reduced, act now! If you make a pension contribution, or gift to charity, you can bring your income down to inside the new threshold.

Savings and investments

On the other side of the coin, anyone putting money into a pension saw the lifetime allowance increased from £1 million to £1.03 million (from 6 April 2018; no change to the annual allowance). If you are lucky enough to have funds that already exceed the £1 million limit, you might want to wait before you take your benefits. For those choosing an Individual Savings Account (ISA) or Lifetime ISA (LISA) the annual subscription limit will also remain unchanged, at £20,000 and £4000 respectively.

Capital taxes

A new 30-day payment window – between a capital gain arising and the payment of capital gains tax (CGT) – is now deferred until April 2020. With regards to inheritance tax, the nil rate band is to remain at £325,000. But don’t forget an important change due to start from 6 April 2018, when the inheritance tax residence nil rate band will rise to £125,000. If you don’t plan for this now, you could be significantly out of pocket when the time comes.

Property taxes and business rates

If you have been affected by the so-called ‘staircase tax’ (for businesses that occupy more then one floor of a building) you will be able to ask for your valuations to be recalculated. Another potentially relevant change was the switch to consumer price index (CPI) being bought forward to 1 April 2018. Also noteworthy is that the business rate discount for public houses with a rateable value of up to £100,000 will continue (subject to conditions) and non-domestic properties will be re-valued every three years following the next one, in 2020. In terms of planning, half of any interest for personal, buy-to-let borrowing will be limited to a 20 per cent tax credit from 2018/19, so make sure you understand if and how it will impact on you.

And finally!

The much-feted Making Tax Digital (MTD) scheme is still a work in progress – no business will be required to use it until 2019. When it has been shown to be successful, we can expect a roll out, but that won’t be until 2020 at the earliest. Getting prepared now won’t harm you at all though, as any business or individual within MTD will have to keep digital records and update HMRC quarterly. Maybe now is the time to review your record keeping.

The message? Plan ahead! A ‘steady-as-she-goes’ approach – while being meticulously organised and with the support of the right experts – will keep you focused and ready for anything as we embrace another year and whatever it may bring.

To find out more, call Lansdell & Rose on 020 7376 9333,

Or visit www.lansdellrose.co.uk

The Faculty of General Dental Practice (UK) has awarded Fellowships to thirteen individuals in recognition of their exceptional contribution to the profession. Fellowship is the highest award offered by FGDP(UK), and is a pinnacle of achievement for the profession. Two people have been given Honorary Fellowship, seven Fellowship by Election and four Fellowship Ad Eundum. The awards will be conferred at the annual FGDP(UK) Diplomates Ceremony, which will take place on 12 March 2018.

Honorary Fellowship

Professor Keith Horner

Keith Horner qualified as a dentist in 1981 from Leeds University and held several hospital posts in Leeds and Sheffield. He has served on influential working parties and advised bodies such as the Health Protection Agency and the IAEA Radiation Protection of Patients Unit. He is also Co-Editor of the FGDP's Selection Criteria for Dental Radiography guidance.

Mrs Fiona Erasmus

Mrs Erasmus is a former Director of FGDP(UK) (2013-2016), and has been recognised for her leadership skills and distinguished service to FGDP(UK).

Fellowship by Election

Dr Graham Douglas Stokes

Dr Graham Stokes has been providing dental implants for over ten years, and obtained the FGDP(UK) Diploma in Implant Dentistry in 2009. Clinical Lead at a practice in Bromsgrove, where he has been based since 1991, Dr Stokes also lectures widely across the UK on implants, full dentures and treatment planning.

Mr William Paul Cushley

Mr Cushley has worked as a Vocational Training Adviser for NHS Education in Scotland for the last 16 years, and has been an examiner on the DGDP, MFGDP and latterly the MJDF for the Faculty.

Mr Bruce Hogan

Mr Hogan graduated from Glasgow University in 1987 gaining BDS with honours. Currently Chair of FGDP(UK)'s West of Scotland Division, he is also an examiner for the Faculty of Dental Surgery of the RCPS Glasgow, and serves on the Board of Dental Education, Training & Professional Development at the College. He regularly lectures to VDPs on the use of local anaesthetics.

Mr Tony Wyn Jones

In addition to practicing dentistry since 1982, Mr Jones has served in Afghanistan as an RAF Dental Officer. He was an examiner for the MFGDP and later the MJDF from 2003-2012, including examining in Hong Kong.

Dr Pearse Stinson

Dr Stinson obtained his dental degree in 1981, after which he commenced an associateship in General Practice. He opened his own practice in 1986 and has been active in the FGDP since its inception, serving as a Board member for twelve years.

Dr Derek Maguire

Dr Maguire qualified 30 years ago from Queen's University, Belfast. He has also been awarded Membership of the Faculty of Dental Trainers with the Royal College of Surgeons of Edinburgh (MDTFEd).

Fellowship Ad Eundem

Mr Nicholas John Lewis

Dr Daniel Chi Kwok Ng

Mr Anish N Shah

Dr Kenny Siu Keung Tong

Spare a thought for those within the profession who are struggling with financial difficulties this Christmas. Circumstances can change suddenly for many reasons, leaving families feeling the pinch and less than cheery as the festivities get underway. 

BDA Benevolent Fund offers additional financial support at this time of year to ensure that families don’t miss out. 

If you, or a dentist you know, are facing financial difficulties, please contact BDA Benevolent Fund, in confidence, on 020 7486 4994, or visit www.bdabenevolentfund.org.uk for more information. 

The charity relies on donations.  To donate, please visit www.justgiving.com/bdabenevolentfund or send a cheque, payable to ‘BDA Benevolent Fund’, at BDA Benevolent Fund, 64 Wimpole Street London W1G 8YS. Every £1 donated goes directly to a dentist and their family in crisis so your help really does support someone in need.”

The BDA Benevolent Fund wishes you a fantastic festive season, and thanks everyone who has supported them throughout the year.